Mexico has been the world’s seventh largest vehicle producer for three consecutive years, and in 2022 turned out more than 3.5 million vehicles. Despite supply chain and raw material challenges, that figure was 10% higher than the 2021 total. The country is currently home to about 20 major vehicle production plants. But what happens to this manufacturing industry as global automakers transition to an electric future?
Attracting investment
To date, Mexico has received significant investments pledges from some big name automotive players to support local electric vehicle (EV) production. Ford’s Cuautitlan plant assembles the Mustang Mach-E and aims to nearly double hourly production of the model by the end of 2023. General Motors, the largest automaker in the country, has pledged US$1bn to prepare its Ramos Arizpe plant for EV production. In March 2023, Tesla confirmed plans to set up “the biggest EV plant in the world” near Monterrey, the capital of the northeastern state of Nuevo León. Around the same time, BMW said it would invest €800m (US$858m) to incorporate production of its electric Neue Klasse line-up and battery assembly at the San Luis Potosi plant.
